BASIN DISCOVERY

Basin Exploration, Inc. announced that it has participated in an apparent discovery well in the Gulf of Mexico on West Delta Block 63. Basin operates the property with a 50% working interest and Duke Energy Hydrocarbons, LLC owns the remaining 50% working interest.
The apparent discovery was drilled to a true vertical depth of approximately 13,920 feet and encountered an estimated 117 net feet of oil and gas/condensate pay in multiple Miocene-aged sands below a true vertical depth of 11,000 feet. The well was drilled by Marine Drilling’s jackup, Marine 17. Production casing has been set and the company plans to temporarily suspend the well pending completion and to immediately begin drilling a second well on the property to test another prospect in a separate fault block. The company plans to subsequently install production facilities on West Delta Block 63 or to connect production from the property to a nearby platform operated by a third-party. Basin anticipates that initial production from West Delta Block 63 will be established by late this year or in early 2000.